While we mostly cover local news on Inside Retail, we know retailers operate in a global economy and are affected by trends and changes taking place internationally.
As such, each week we round up the biggest global news stories so you can stay informed about the industry beyond our little island.
Macy’s to downsize store network on $1 billion hit to quarter
Source: Reuters
Department store chain Macy’s has said it will see operating losses of over $1 billion in the first quarter on the impact of COVID-19 lockdowns.
The business shut all 775 of its stores in March.
McDonald’s hit with class action for “endangering employees”
Source: Reuters
The same week the fast-food giant was hit with allegations of failing to stop widespread sexual harassment, a second class action was lodged accusing the business of failing to adopt US safety measures and endangering employees.
McDonald’s pushed back, stating employee safety is a top priority.
Marks & Spencer to revise business model after COVID-19
Source: Reuters
M&S will accelerate its turnaround in an effort to revitalise itself after COVID-19 cut its latest revival plan short.
“I am determined to use the lessons from the crisis and accelerate the transformation of M&S so we can emerge as a renewed and stronger business,” CEO Steve Rowe said.
Urban Outfitters expects massive blow to same-store sales
Source: Reuters
Apparel retailer Urban Outfitters is expecting a 60 per cent decline in same-store sales during its second quarter.
“We believe a return to near pre-virus levels will take many quarters and a medical vaccine or cure,” Chief Executive Officer Richard Hayne told analysts.
Bath & Body Works keeps L Brands alive
Source: Bloomberg
L Brands has witnessed a change in customer demand during the pandemic period, with customers opting to purchase bath soaps and hand sanitizer over lingerie.
Digital sales at Bath & Body Works almost doubled during the first quarter, while Victoria’s Secret saw sales fall 15 per cent.
Steinhoff chairwoman quits over funding scandal
Steinhoff Holdings International chairwoman Heather Sonn resigned from her post after it emerged a firm she partly owns may have taken funds from the South African retailer.
The furniture retailer has recovered somewhat from a 2017 accounting scandal, but its stock remains 98 per cent below pre-scandal levels.
Apple reopening stores in virus-hotspot Italy
Source: Bloomberg
Apple will open between 10 and 17 of its stores across Italy next week, though is avoiding the hardest hit areas of Lombardy and Piedmont.
The business will require staff to wear face coverings, enforce social distancing, and will offer temperature checks to curb the spread of the virus.
